Financial Performance Highlights (H1 FY27 Consolidated)

  • Revenue from Operations: INR667 crores (vs. INR680 crores in H1 FY26)
  • Export Revenue: Approximately INR120 crores
  • Device Sales: 559 units sold
  • Kit Sales: 94.7 lakh units sold
  • EBITDA: INR153 crores, representing a 23% margin
  • PAT: INR60 crores
  • OptraSCAN Impact: Contributed an EBITDA loss of INR15 crores (approx. 2.2% of total revenue)
  • Net Cash Position: Achieved as of September 2026 (vs. net debt of INR57 crores as of March 2026)
  • Working Capital: Trailing 12-month receivable days improved to 77 days; inventory turnover at 1.2 times

Reason for Revenue Softness

The H1 revenue was slightly below the previous year primarily due to a one-month delay in finalizing the renewal of the rate contract with the Indian government. The negotiation process was prolonged, pushing order releases by approximately one month. Management confirmed the rate contract is now finalized and orders are being shipped, with no impact on the full-year procurement target.

Full-Year Guidance Reaffirmed

Management reiterated its guidance for FY27:

  • Revenue Growth: 25% year-on-year
  • EBITDA Margin: 24% to 25%

The business typically follows a 40%/60% revenue split between H1 and H2, and this pattern is expected to continue.

Business and Operational Updates

  • Government Business: The company's Truenat platform is central to Indian public health programs. The government procurement process involves a 2-year rate contract after price negotiation, followed by periodic order releases. Payment terms are typically 60-75 days from invoice.
  • HPV and Hepatitis Programs: The company has received approvals and is included in the national algorithm for Hepatitis B and C. A central government procurement for hepatitis is being finalized, with state procurements already underway. The HPV program is also expected to commence soon.
  • Capacity Utilization & Capex: The company has utilized INR72 crores from its IPO proceeds for automation equipment. This investment is expected to support a 3x increase in capacity from the current level, sufficient to handle a top line of approximately INR3,000 crores without requiring further immediate capex.

Research & Development and New Product Pipeline

Three new diagnostic platforms are in advanced stages of development:

1. Truepoc™: A swab-based, affordable molecular screening tool designed for use in peripheral facilities to increase testing reach. Developed with support from the Gates Foundation (no royalties payable).

2. Trueamp®: A multiplexing platform for syndromic testing (respiratory panels, STI panels, sepsis, antimicrobial resistance) aimed at hospitals and laboratory networks. Fully developed in-house with no royalties.

3. Truecyte®: A point-of-care platform for complete blood count (CBC), 5-part differential, cell morphology, and hemoglobin, leveraging AI. Targeted at doctor's offices for immediate results.

Regulatory Status: Clinical studies for CDSCO (Indian regulatory) approval are ongoing. A global launch is planned upon approval, expected in approximately 4-5 months.

Expansion into Veterinary Vertical

The company is building a new vertical for veterinary applications:

  • Radiology: Selling existing human X-ray systems for veterinary use (pets, horses). Sales have already commenced.
  • Truenat Assays: One assay for rabies is already on the market. Five to six new assays for companion pets (e.g., parvo, canine distemper, leptospirosis) are in development and validation, with a target launch in FY28.
  • Go-to-Market: A dedicated team is being built to leverage the same platforms for the veterinary market.

OptraSCAN (Digital Pathology Subsidiary) Update

OptraSCAN received US FDA approval 2.5 months ago. Commercial efforts are underway in the US and other markets. Meaningful revenue contribution is expected to start from FY28.

Export Outlook

Management expects export activity to significantly pick up in H2 FY27, driven by the Global Fund procurement cycle, which will include new machine orders and consumables for the existing installed base.

Question & Answer Session Highlights

  • The management addressed queries on revenue volatility, government tender processes, the size of the veterinary market (unorganized, market creation opportunity), and the commercial potential of the new platforms.
  • It was clarified that the new platforms will have dedicated go-to-market strategies: Trueamp® for the private sector, Truepoc™ for public health, and Truecyte® potentially involving partnerships.
  • The WHO endorsement and Global Fund listing for Truenat were noted as advocacy tools that aid market access but do not involve direct promotional support.